We represent individuals, investors, and companies in complex cases involving digital assets and cross-border disputes — inside the UAE and internationally.
The digital assets market in the UAE is growing rapidly, and alongside it, a significant rise in sophisticated fraud operations targeting investors of all nationalities. Understanding the nature of these operations is the first step toward effective legal protection.
01Pig Butchering Fraud via WhatsApp & Telegram
This is one of the most prevalent forms of digital fraud in the UAE. Fraudsters build a trust relationship with the victim through lengthy conversations — sometimes weeks — then direct them to a fake crypto investment platform that displays fabricated profits before disappearing with the funds.
- Promises of guaranteed or fixed returns at unrealistic rates
- Invitation to join an “exclusive” trading group
- Allowing small withdrawals initially to build trust
- Escalating pressure to invest increasingly larger amounts
- Platform not listed in VARA or DFSA licensed registries
Falls under Federal Decree No. 34 of 2021 on Combating Cybercrime. Constitutes electronic fraud punishable by imprisonment and fines. Subject to fraud and misrepresentation provisions of the Federal Civil Transactions Law.
02Fake ICOs (Initial Coin Offerings)
These projects exploit the appeal of investing in new digital currencies. Fraudsters present a professional White Paper, a sophisticated website, and sometimes a fake office in areas such as DIFC — then disappear after collecting funds.
- Anonymous team or unverifiable claims
- Promises of exceptional returns in a short period
- No licence from SCA, VARA, or DFSA
- Inability to trade tokens on recognised platforms
Cabinet Resolution No. 111 of 2022 prohibits issuing or trading digital assets without a licence. Civil and criminal prosecution is possible, including fund recovery and compensation.
03Ponzi Schemes Using Digital Assets
These schemes deceive investors into believing they receive real profits — actually funded by new investors’ money rather than genuine business activity. Notable examples that extended to the UAE: HyperVerse, OneCoin, and Bitconnect.
- Fixed and guaranteed returns regardless of market conditions
- A referral system rewarding the recruitment of new investors
- Difficulty or impossibility of withdrawing funds on demand
These fall under financial fraud and commercial deception crimes. Dubai courts have issued judgments including Punitive Damages in similar cases.
04Digital Wallet Hacking & Private Key Theft
These crimes include Phishing via emails or fake links appearing to come from recognised platforms such as Binance or Kraken; theft of Private Keys giving full access to a digital wallet; and use of Malware concealed in applications or files.
Federal Decree No. 34 of 2021 explicitly criminalises unauthorised access to electronic systems and theft of digital data. DIFC courts have confirmed that unlawful control over private keys constitutes fraudulent appropriation of private property.
05Impersonation of Regulatory Authorities
Fraudsters exploit the reputation of VARA, SCA, and DFSA by claiming to hold fake licences or sending messages in their name.
VARA, DFSA, and FSRA registries are publicly available on their official websites. Any entity not listed is operating unlawfully.